Q4 FY26 Archives - ChartAlert®

TVSMOTOR – TVS Motor Company – Q4 FY26 Financial Results – 13-May-26

TVS Motor’s FY26 shows 36% PAT growth, EPS rising ₹47→₹64, and strong auto leverage. Risks: negative FCF, rising short‑term borrowings, <1x current ratio, and NBFC‑driven expansion. Re‑rating hinges on sustaining >12% operating margins; Q4 dip to 11.3% is the key watchpoint.

1–2 minutes

🔍 Observations

Topline

Revenue from operations surged 27.2% YoY (₹44,089 Cr → ₹56,070 Cr), with automotive segment driving ₹11,385 Cr of the ₹12,980 Cr incremental revenue.
Q4FY26 revenue of ₹15,053 Cr grew 30.4% YoY, maintaining strong sequential momentum — Q3 to Q4 added ₹297 Cr despite a high base.
Financial services segment contributed ₹7,202 Cr (12.8% of total revenue), growing 8.4% YoY — steady but meaningfully slower than the core auto business.

Bottomline

PAT from continuing operations grew 35.6% YoY (₹2,350 Cr → ₹3,186 Cr); attributable PAT grew 35.0% (₹2,236 Cr → ₹3,018 Cr).
EPS expanded from ₹47.05 to ₹63.53 — a 35% uplift on an unchanged share count of 47.51 Cr shares, meaning all growth is organic earnings accretion.
Q4FY26 PAT of ₹820 Cr grew 19.4% YoY (vs ₹687 Cr), though sequentially weaker than Q3’s ₹891 Cr — partially explained by Q3 carrying an exceptional loss of ₹50 Cr.

Margins

Full-year operating margin expanded 70 bps YoY (10.8% → 11.5%); Q4FY26 operating margin of 11.3% lagged Q4FY25’s 12.1% — sequential margin compression evident.
Net profit margin improved 30 bps YoY (5.4% → 5.7%), modest given the revenue scale-up — input cost intensity remains high (materials + purchases = ~61.5% of revenue).
Finance costs rose 6.5% YoY (₹2,093 Cr → ₹2,230 Cr), largely NBFC-driven; excluding NBFC, interest coverage improved to 17.75x from 14.36x — a strong signal on automotive business quality.

Growth Trajectory

3-year compounding implied by FY26 scale (₹56,070 Cr revenue, ₹3,186 Cr PAT) suggests sustained double-digit volume and value growth across both segments.
Automotive segment EBIT grew 42.9% YoY (₹2,769 Cr → ₹3,958 Cr) — profit growth meaningfully outpacing revenue growth of 30.3%, confirming operating leverage at work.
Associate losses narrowed sharply (₹74 Cr → ₹41 Cr), suggesting international/JV businesses are on an improving trajectory.

CIPLA – Cipla Ltd – Q4 FY26 Financial Results – 13-May-26

Cipla’s FY26 shows 2.2% revenue growth but 540 bps margin erosion and 53% Q4 PBT collapse amid heavy reinvestment in intangibles/capacity. Balance sheet remains net cash (~₹8,440 Cr) with strong liquidity. Re‑rating hinges on margin inflection from complex generics driving revenue acceleration in FY27.

1–2 minutes

🔍 Observations

Topline

FY26 consolidated revenue grew 2.2% YoY (₹27,548 Cr → ₹28,163 Cr) — modest organic growth signalling market share consolidation rather than acceleration.
Q4FY26 revenue of ₹6,541 Cr declined 7.5% QoQ vs Q3FY26’s ₹7,074 Cr, indicating a seasonally weak close to the year.
Other operating revenue grew 12.1% YoY (₹402 Cr → ₹451 Cr), contributing marginally to headline growth.

Bottomline

FY26 net profit fell sharply 26.7% YoY (₹5,269 Cr → ₹3,862 Cr), driven by an exceptional loss of ₹276 Cr in Q3FY26 and a Q4FY26 normalised profit compressed by higher D&A and employee costs.
Q4FY26 net profit of ₹543 Cr is down 55.3% YoY vs Q4FY25’s ₹1,214 Cr — even stripping the exceptional, Q4 shows meaningful operational deterioration.
Basic EPS collapsed from ₹65.29 to ₹48.03 YoY (-26.5%), directly reflecting the profit decline with an essentially flat share count.

Margins

EBITDA proxy (PBT + D&A + Finance costs): FY26 = ₹5,499 Cr + ₹1,211 Cr + ₹54 Cr = ₹6,764 Cr on revenue of ₹28,163 Cr → EBITDA margin ~24.0% vs FY25: (₹6,821 Cr + ₹1,107 Cr + ₹62 Cr) / ₹27,548 Cr = ₹7,990 Cr / ₹27,548 Cr ~29.0% — a 500 bps YoY compression.
Net profit margin: FY26 = ₹3,862 Cr / ₹28,163 Cr = 13.7% vs FY25 = ₹5,269 Cr / ₹27,548 Cr = 19.1% — 540 bps deterioration.
Cost inflation is broad-based: employee costs +11.1% YoY, other expenses +10.0%, D&A +9.4%, stock-in-trade purchases +15.6% — all outpacing 2.2% revenue growth.

Growth Trajectory

Revenue CAGR is tracking low single digits while cost growth is in the high single digits — a structural margin squeeze if sustained.
Intangible additions of ₹1,480 Cr in FY26 vs ₹386 Cr in FY25 signal an aggressive inorganic/licensing push; near-term earnings dilution is the cost.
Goodwill rose from ₹3,270 Cr to ₹3,754 Cr (+14.8%) — acquisition-led expansion carries impairment risk if acquired businesses underperform.

DRREDDY – Dr. Reddy’s Laboratories – Q4 FY26 Financial Results – 12-May-26

Dr. Reddy’s FY26 shows North America contraction (‑22% FY, ‑51% Q4) dragging profitability despite EM/Europe/India growth. Gross margin fell 570 bps, SG&A inflated, borrowings and impairments rising. FCF ₹18,330 Mn remains positive, but re‑rating hinges on North America stabilisation; absent that, FY27 earnings trajectory stays challenged.

1–2 minutes

🔍 Observations

Topline

FY26 revenue grew 3% YoY (₹325,535 Mn → ₹335,933 Mn); Q4FY26 dropped 12% YoY and 14% QoQ to ₹75,162 Mn — the weakest quarter of the year.
North America collapsed 51% YoY in Q4 (₹35,586 Mn → ₹17,562 Mn) and 22% for full FY26 — a structural drag that erased gains elsewhere.
Europe (+55% FY26 YoY) and Emerging Markets (+23%) partially offset the North America erosion; India grew a solid 16% to ₹62,186 Mn.

Bottomline

FY26 net profit fell 26% YoY (₹57,245 Mn → ₹42,466 Mn); Q4FY26 net profit of ₹2,205 Mn was 86% below Q4FY25 (₹15,873 Mn).
Q4 tax line shows a net credit of ₹214 Mn (vs. expense of ₹4,181 Mn in Q4FY25), suggesting deferred tax reversals propped up an otherwise near-zero operating quarter.
Basic EPS declined from ₹67.88 to ₹51.48 for FY26; Q4 EPS of ₹2.64 vs. ₹19.13 a year ago underscores the severity of the Q4 drop.

Margins

FY26 gross margin compressed to 52.8% (₹177,264 Mn / ₹335,933 Mn) from 58.5% in FY25 — a 570 bps erosion driven by cost of revenues rising 17% while revenue grew only 3%.
PSAI segment gross profit fell 35% YoY (₹9,157 Mn → ₹5,984 Mn) on a revenue decline of just 3% — margin collapse within the segment is severe.
Operating profit (Results from operating activities) dropped 30% YoY (₹71,843 Mn → ₹50,551 Mn); Q4 operating profit of ₹1,325 Mn vs. ₹17,647 Mn in Q4FY25 — an 92% collapse.

Growth Trajectory

Revenue CAGR is nominal at 3% for FY26; the geographic mix shift away from high-margin North America toward Emerging Markets and Europe changes the structural profitability profile.
R&D spend fell 12% YoY (₹27,380 Mn → ₹24,058 Mn) — pipeline investment is declining even as the company faces revenue headwinds; raises medium-term concern.
SG&A rose 14% YoY (₹93,870 Mn → ₹106,763 Mn) against 3% revenue growth — operating leverage is working in reverse.

TATAPOWER – Tata Power Company – Q4 FY26 Financial Results – 12-May-26

Tata Power’s FY26 shows Thermal collapse offset by Renewables/T&D growth, but OCF halved, debt accelerated, and EPS fell 27%. Transition is intact, yet sustainability hinges on Renewables/T&D margins compounding faster than leverage costs. FY27 signposts: OCF recovery and debt/equity trajectory.

1–2 minutes

🔍 Observations

Topline

FY26 revenue from operations fell 4.7% YoY (₹65,478 Cr → ₹62,429 Cr), driven by a sharp collapse in Thermal & Hydro segment revenue (₹19,739 Cr → ₹11,636 Cr, down 41%), likely from fuel cost pass-through reduction and lower merchant tariffs.
T&D segment offset the decline, growing 5.7% YoY (₹39,121 Cr → ₹41,339 Cr); Renewables surged 52.2% (₹9,876 Cr → ₹15,028 Cr), becoming the second-largest revenue segment.
Q4FY26 revenue of ₹14,900 Cr was 12.8% below Q4FY25 (₹17,096 Cr), reflecting the full-year Thermal drag concentrated in Q4.

Bottomline

Net profit grew 7.2% YoY (₹4,775 Cr → ₹5,118 Cr) despite topline contraction — a margin-led improvement story.
PAT attributable to parent shareholders: ₹3,745 Cr (FY26) vs ₹3,943 Cr (FY25), actually down ~5%; NCI profit jumped to ₹1,373 Cr from ₹832 Cr, skewing consolidated growth optics.
EPS (before regulatory deferral) fell from ₹14.64 to ₹10.72 — a more honest signal of per-share earnings dilution than the headline PAT number.

Margins

Operating margin improved to 16% in FY26 from 15% in FY25 — modest but directionally right given Thermal’s higher-cost structure shrinking in the mix.
Net profit margin at 8% (FY26) vs 7% (FY25); cost of fuel collapsed from ₹13,918 Cr to ₹7,498 Cr (down 46%), but raw material/construction costs doubled (₹4,921 Cr → ₹8,618 Cr), signaling EPC/capex execution ramp.
Finance costs rose 11.8% YoY (₹4,702 Cr → ₹5,257 Cr), capping margin expansion upside.

Growth Trajectory

Renewables segment results grew 50.7% YoY (₹2,881 Cr → ₹4,341 Cr); T&D segment results grew 37.2% (₹3,206 Cr → ₹4,399 Cr) — both outpacing the consolidated business.
Thermal segment results cratered 48.5% (₹3,813 Cr → ₹1,965 Cr); as Thermal’s weight shrinks, the blended margin profile should structurally improve.
Regulatory deferral additions of ₹1,252 Cr (vs. a negative ₹976 Cr in FY25) flatter FY26 PBT — underlying operational earnings recovery is partially regulatory-assisted.

MTARTECH – MTAR Technologies – Q4 FY26 Financial Results – 12-May-26

MTAR Technologies’ FY26 shows 30% revenue growth, 360 bps margin expansion, and near‑doubling PAT, backed by ₹2,549M customer advances. Yet debt doubled, receivables rose 61%, and FCF turned deeply negative. FY27 hinges on receivable DSO and debt trajectory to confirm controlled scale‑up vs leverage‑driven earnings.

1–2 minutes

🔍 Observations

Topline

Revenue from operations surged 30% YoY (₹6,760M → ₹8,762M), with product sales the primary driver, jumping 30% (₹6,646M → ₹8,654M).
Q4 FY26 revenue of ₹3,061M was 67% higher than Q4 FY25 (₹1,831M) — strongest quarter of the year, confirming an accelerating demand curve.
Other income spiked to ₹231M (vs ₹52M in FY25), largely from mutual fund fair value gains (₹86M) — non-recurring and should be stripped for core analysis.

Bottomline

Net profit nearly doubled YoY: ₹529M → ₹940M (+78%), driven by operating leverage and revenue scaling.
Q4 FY26 PAT of ₹443M is 3.2x Q4 FY25 (₹139M), demonstrating steep sequential and annual profit acceleration.
Effective tax rate improved slightly (26.1% in FY26 vs 26.1% in FY25), neutral contribution to profit growth.

Margins

EBITDA (PBT + Finance Costs + D&A): FY26 = ₹1,299M + ₹294M + ₹350M = ₹1,943M on revenue of ₹8,762M → EBITDA margin: 22.2% vs FY25: ₹715M + ₹222M + ₹322M = ₹1,259M on ₹6,760M → 18.6%. ~360bps margin expansion YoY.
Net profit margin: ₹940M / ₹8,762M = 10.7% vs ₹529M / ₹6,760M = 7.8% — 290bps improvement.
Employee costs as % of revenue: 17.2% (FY26) vs 18.3% (FY25) — operating leverage on fixed-cost workforce base is materialising.

Growth Trajectory

Revenue CAGR implied on a 2-year base (FY25 vs FY26) is strong; the Q4 trajectory suggests FY27 could open well above ₹3,000M/quarter run-rate.
Inventory build (₹3,461M → ₹5,005M, +45%) and large advances received (other current liabilities ₹445M → ₹2,549M, +473%) suggest a robust order book being prepped for execution.
The scale-up appears demand-led rather than speculative — advance receipts of ₹2,549M signal confirmed customer commitments.

DIXON – Dixon Technologies – Q4 FY26 Financial Results – 12-May-26

Dixon’s FY26 shows OCF inflection, EBITDA margin expansion, and a fortress balance sheet, validating EMS scale‑up. Reported PAT is inflated by exceptional gains and investment income; valuation should anchor on operating PBT. Future margin gains hinge on product mix premiumisation, with rich valuations leaving little room for misses.

1–2 minutes

🔍 Observations

Topline

Revenue scaled 25.8% YoY (₹38,860 Cr → ₹48,873 Cr), confirming Dixon’s position as the dominant EMS play in India’s electronics manufacturing boom.
Q4FY26 revenue at ₹10,511 Cr was broadly flat QoQ (vs ₹10,672 Cr in Q3), suggesting seasonal normalisation after a strong H2.
Other income surged to ₹713 Cr in FY26 (vs ₹20 Cr in FY25), largely driven by a ₹670 Cr fair value/sale gain on equity investments — non-recurring in nature.

Bottomline

Reported PAT grew 33.4% YoY (₹1,233 Cr → ₹1,644 Cr), but includes ₹460 Cr exceptional gain (FY26) vs ₹250 Cr in FY25 — distorting comparability.
PAT attributable to owners grew 31.4% (₹1,095 Cr → ₹1,439 Cr); minority interests absorbed ₹206 Cr, reflecting rising JV/subsidiary scale.
Core operating profit (PBT pre-exceptional, pre-JV share) rose 87.6% YoY (₹1,092 Cr → ₹2,049 Cr) — the real earnings engine.

Margins

EBITDA (PBT pre-exceptional + Finance costs + D&A): FY26 = ₹2,049 Cr + ₹137 Cr + ₹393 Cr = ₹2,579 Cr on revenue of ₹48,873 Cr → EBITDA margin ~5.3% vs ~4.1% in FY25 (₹1,092 + ₹154 + ₹281 = ₹1,527 Cr / ₹38,860 Cr).
Net profit margin (reported): 3.4% in FY26 vs 3.2% in FY25 — modest expansion, held back by thin EMS economics and rising depreciation (+40% YoY).
Material cost ratio improved marginally: cost of materials at 93.0% of revenue (FY26) vs 92.9% (FY25) — essentially flat, indicating no meaningful component cost relief.

Growth Trajectory

Revenue CAGR implied at 25%+ annualised; operating profit growth of 88% outpaced topline, signalling operating leverage beginning to kick in at scale.
EPS (basic) grew 32% YoY (₹205.70 → ₹271.59), with dilution minimal — share count stable at ~608 lakh shares.
Capex intensity remains high: ₹1,068 Cr in FY26 vs ₹939 Cr in FY25 (+13.7%), reflecting continued capacity build-out ahead of demand.

BRITANNIA – Britannia Industries – Q4 FY26 Earnings Call – 8-May-26

BRITANNIA’s topline resilient (7–9% base case), margins defended via CEP and pricing, but risks skew to inflation and channel normalization delays.

1–2 minutes

Also see: BRITANNIA – Britannia Industries – Q4 FY26 Financial Results – 7-May-26

3-Scenario Framework

📊 Base Case (60% Probability)

Key Variables: Normal monsoon + GST stabilization + partial West Asia recovery.
FY27 revenue growth 7–9%, margins stable at 17% as price hikes offset inflation; volume growth recovers to 6–7% post-Q1. E-commerce at 8–10% of sales, adjacencies outperform biscuits.

CHOLAFIN – Cholamandalam Investment and Finance – Q4 FY26 Earnings Call – 4-May-26

Cholamandalam Investment and Finance topline growth (20–23% AUM) is structurally supported by diversification, but bottomline expansion hinges on credit cost discipline (1.5% target) and opex control; margins (NIMs ~8%) remain resilient unless macro shocks materialize.

1–2 minutes

Also see: CHOLAFIN – Cholamandalam Investment and Finance Company – Q4 FY26 Financial Results – 30-Apr-26

3-Scenario Framework

📊 Base Case (50% Probability)

Key Drivers: Credit costs stabilize at 1.5%, AUM grows 20–23%, and CSEL ROA crosses 3%. Gold Loan contributes incrementally (INR 6,000–8,000 crore AUM) but opex remains elevated (~3.1% of AUM). Fuel prices rise 10% but LCV/SCV operators pass on costs.
Outcome: ROA at 3.5%, NIMs at 8%, and EPS grows 15–20% YoY.

BRIGADE – Brigade Enterprises – Q4 FY26 Earnings Call – 7-May-26

BRIGADE’s topline growth hinges on launch execution and IT demand, while margins and bottomline depend on pricing power and debt discipline.

1–2 minutes

Also see: BRIGADE – Brigade Enterprises – Q4 FY26 Financial Results – 6-May-26

3-Scenario Framework

📊 Base Case (50% Probability)

Drivers: Approvals normalize but remain back-ended, IT demand softens marginally, and commercial leasing absorbs 2M sq. ft.. Pre-sales hit INR 9,000 cr (+20% YoY), with 7–9% price increases offsetting cost inflation. Revenue grows 12–14% YoY, EBITDA margins at 28%, and net debt rises to INR 2,500 cr (Debt/Equity: ~0.30).

SYRMA – Syrma SGS Technology – Q4 FY26 Financial Results – 11-May-26

Syrma SGS’s FY26 delivered near‑doubling PAT, 220 bps margin expansion, and debt reduction post‑QIP, validating EMS scale‑up. Balance sheet is conservative, operating leverage emerging. Risks: ~28% PAT‑FCF gap, rising goodwill, and WC intensity. FY27 hinges on receivables quality, acquisition integration, and FCF conversion.

1–2 minutes

🔍 Observations

Topline

Revenue surged 27.3% YoY to ₹48,190.59 Mn (FY26 vs ₹37,866.91 Mn FY25), reflecting strong EMS demand across customer verticals.
Q4FY26 revenue of ₹14,650.12 Mn grew 58.5% YoY vs Q4FY25 (₹9,243.61 Mn), accelerating meaningfully from the prior quarter’s ₹12,641.80 Mn.
Other income fell to ₹378.07 Mn (FY26) from ₹489.22 Mn (FY25), confirming topline quality is operationally driven.

Bottomline

PAT nearly doubled to ₹3,458.06 Mn (FY26) from ₹1,844.50 Mn (FY25) — an 87.5% YoY jump, materially outpacing revenue growth.
Effective tax rate rose to 22.4% (FY26) vs 22.2% (FY25), broadly stable — PAT expansion is earnings-driven, not tax-distorted.
Basic EPS grew 77.4% YoY to ₹16.94 from ₹9.55, despite equity dilution from the QIP; underlying earnings power per share strengthened sharply.

Margins

EBITDA (PBT + Finance costs + D&A): FY26 = ₹4,453.76 + ₹482.60 + ₹841.09 = ₹5,777.45 Mn; EBITDA margin = 5,777.45 / 48,190.59 = 12.0% vs FY25 = (₹2,370.75 + ₹584.60 + ₹750.69) / ₹37,866.91 = 9.8% — 220 bps expansion.
Net profit margin: ₹3,458.06 / ₹48,190.59 = 7.2% (FY26) vs ₹1,844.50 / ₹37,866.91 = 4.9% (FY25) — 230 bps expansion.
Finance costs declined to ₹482.60 Mn (FY26) from ₹584.60 Mn (FY25) despite balance sheet growth, signalling working capital discipline improving.

Growth Trajectory

27.3% revenue CAGR on a ₹37.9 Bn base is high-quality for EMS; Q4FY26’s 58.5% YoY print suggests deal wins ramping in H2.
PAT growth of 87.5% YoY indicates operating leverage is kicking in — fixed cost absorption improving as scale rises.
ROE held steady at 12.3% despite significant equity dilution (QIP proceeds of ₹9,781.92 Mn), implying the capital is being deployed productively.